facebooktwitterRSS
- Advertisement -
  • Most Commentedmost commented up
  • Most Emailedmost emailed up
  • Popularmost popular up
- Advertisement -
 

« News Home

Bill will protect Ohioans from predatory lenders



Published: Tue, June 20, 2006 @ 12:00 a.m.



The law is hoped to stop those who target people with bad credit.

By JEFF ORTEGA

VINDICATOR CORRESPONDENT

COLUMBUS -- The state Consumer Sales Practices Act would be extended to cover mortgage lending practices, under a bill signed into law Monday by Gov. Bob Taft.

The new law, sponsored by state Sen. Joy Padgett, a Coshocton Republican, would also require state licensing of appraisers and require national criminal background checks for mortgage brokers, loan officers and appraisers.

Taft and others state officials credited bipartisan work in the Legislature for the new measure to combat so-called "predatory lending" practices.

"This is truly a victory for bipartisan action to address a huge problem in our state," said the Republican Taft.

"This bill represents historic protection for Ohio home buyers," Padgett said.

The law's effects

Under the new law, certain changes to mortgage terms would have to be promptly communicated to the consumer before any deal closes. Also, under the law, prepayment penalties would be banned for loans of less than $75,000.

"The menace of predatory lenders has been ravaging neighborhoods in our cities, suburbs and rural communities," the governor said before signing the bill at the home of a Columbus couple who had been victimized by predatory lenders.

So-called predatory lending has typically been associated with deceptive, high-cost home loans with excessive interest rates, fees and penalties.

Those types of lending practices have grown with loans that are offered at a higher cost than conventional loans to customers who have had credit problems, consumer advocates say.

The new law goes into effect in January.




Comments

Use the comment form below to begin a discussion about this content.


News
Opinion
Entertainment
Sports
Marketplace
Classifieds
Records
Discussions
Community
Help
Forms
Neighbors

HomeTerms of UsePrivacy StatementAdvertiseStaff DirectoryHelp
© 2014 Vindy.com. All rights reserved. A service of The Vindicator.
107 Vindicator Square. Youngstown, OH 44503

Phone Main: 330.747.1471 • Interactive Advertising: 330.740.2955 • Classified Advertising: 330.746.6565
Sponsored Links: Vindy Wheels | Vindy Jobs | Vindy Homes | Pittsburgh International Airport